💱Hong Kong Implements New Licensing Rules For Crypto Exchanges

The Defiant

The Defiant Daily

GM Defiers!

Happy Friday! We start with a look at Hong Kong's new cryptocurrency regulations that have taken effect, aimed at fortifying the region as a hub for fintech and web3. We then delve into the launch of Rocket Pool's rETH liquid staking token on Layer 2 network zkSync Era, a strategic step towards improving accessibility to rETH. Lastly, we turn our attention to the US Commodity Futures Trading Commission reevaluating its risk-management rules.

✍️ In today’s newsletter:

  • Hong Kong takes steps towards becoming regional crypto hub
  • Rocket Pool expands to zkSync Era
  • CFTC looks to revamp risk-management rules for brokers

📈 Markets in the last 24 hrs:

BTC$27,705 0.42%
ETH$1,864.6 0.14%
MKR$688 -0.29%
SPY$412.07 0.08%
UNI$5.451 0.41%
LDO$2.081 0.19%


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Crypto Regulations

New Hong Kong Crypto Regulations Take Effect

TLDR Hong Kong has implemented new cryptocurrency regulations aimed at enhancing the region's status as a fintech and web3 hub. These include guidelines on safe asset custody, client asset segregation, and cybersecurity standards. Additionally, First Digital, a Hong Kong-based trust company, announced the launch of a compliant dollar-pegged stablecoin.

SO WHAT This development underscores Hong Kong's commitment to fostering a clear and regulatory-compliant environment for crypto-assets, indicating a positive outlook for the sector in the region. Firms such as Auros and Aegis Custody perceive this as a significant step in the industry's maturation and a wake-up call for US regulators.


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Liquid Staking

Rocket Pool Launches rETH On zkSync Era

TLDR Rocket Pool's liquid staking token, rETH, is now live on the Layer 2 network zkSync Era, providing a lower-cost way for users to obtain rETH amid rising Ethereum mainnet fees.

As a yield-bearing liquid staking token, rETH allows token holders to accrue Ethereum staking rewards without running their own nodes. Rocket Pool has seen significant growth since its Atlas upgrade in April.

SO WHAT The move comes as rETH is being increasingly integrated across DeFi, with a recent MakerDAO proposal passed to onboard rETH onto Spark Protocol. These partnerships may hold the key to Rocket Pool's competition with Lido, the leading LST provider.

US Regulation

CFTC Sees ‘Significant Risks’ From Digital Assets

TLDR The evolving risks posed by new technology including distributed networks, digital assets, and stablecoins prompted agency commissioner Christy Romero to seek public comment to review associated industry threats.

SO WHAT The request for comment comes after the collapse of several major institutions focused on digital asset services, including FTX, Silvergate Bank, and Signature Bank. According to the CFTC, these events have exposed risks related to safeguarding customer property and the potential for contagion in digital asset markets.

However, industry voices such as Sid Powell, CEO of Maple Finance, suggest that these risks were due to misuse of assets rather than the use of digital assets themselves.


  • Key House Republicans Unveil Crypto Market Structure Draft Bill (Bloomberg)
  • Crypto Lender Celsius’ $800M Ether Staking Shake-Up Stretches Ethereum Validator Queue to 44 Days (Coindesk)
  • Coinbase Derivatives to Launch Institutional Bitcoin and Ethereum Futures (Decrypt)